Car dealer news from car dealers around the country
Fact: Americans love their cars. We have stories about them, songs about them, and Detroit is even called the “Motor City”! So imagine cruising down the highway behind the wheel of a custom ride with the music blasting and not a care in the world; now this is an image that would make almost any American smile.
Continue reading ‘Ford and Nelly Team Up for the 2011 Mustang’
Stories about the automotive industry have been in the newspapers and on the television newscasts for months now, which has been bleak stories to say the least. Lately, there has been some positive stories from the auto industry, most notably stories about improving auto sales across the country. In 2009, the automotive industry struggled the most out of any other industry in the country. There were thousands of jobs lost and hundreds of manufacturing plants closed due to the recession and Americans not buying new cars.
Fresh with a new lineup of brands and new models quickly heading to showrooms, the New General Motors is looking to further alter its image at dealerships. GM is encouraging dealers to remodel showrooms in order to bolster the brand’s image. Luckily, GM is offering to foot some of the bill for updates.
Should dealers require support from GM for the remolding, they must first ensure that GM brands are not sold alongside non-GM brands, which could pose issues for larger auto dealerships. Other requirements are that dealerships must have the remodeling completed within three years. Interestingly, repayment is also contingent of sales figures, not the costs associated with the remodeling. Repayment for remodeling will be made within five to 10 years. Continue reading ‘GM Wants Dealers to Conform’
Following the intense influx of new car sales that were spurred by the seemingly doomed Cash for Clunkers program, the program has officially ended Monday, leaving many showrooms around the country void of new car buyers once again.
Some in the car business are expecting a bit of a “hangover” effect from the close of the Cash for Clunkers program, where sales will begin to dwindle once again as they were prior to the program’s launch. As of Monday, a dealer specializing in San Luis Obispo used cars says about 625,000 Cash for Clunkers applications were submitted by dealers, accounting for about $2.58 billion.
Although the program has officially ended, the Department of Transportation has given dealers a little more time in getting rebate applications submitted for processing. Meanwhile, many dealers such as Toyota dealers Boston have been inundated with new car sales, particularly since the announcement that the program was to end early.
While some dealers wrap up last minute rebate submissions, others are not looking forward to the program’s aftermath. In a time when car sales have reached dismal lows, some such as World Hyundai Matteson fears that sales could drop off dramatically. Even automotive website Edmunds.com has projected a 40 percent drop in sales immediately following the close of the program.
Inventory is a huge problem for many dealers. There are simply not many cars left in showrooms, leaving prices high for consumers. This will leave many consumers disappointed in the near term, but there is still hope suggests a used Honda Pittsburgh dealer. Automakers are beginning to awake, and are adding shifts at plants to produce more cars and fill depleted inventories among dealers. Additionally, with a new model year approaching, all-new models and fresh products will soon be available to showrooms, to entice buyers that have been disappointed recently by the poor selection on dealer lots. Although a renewed interest in new cars may be coming soon, one used car dealer Washington DC is expecting used car demand to rise again in the near-term.
With new cars and new inventories arriving soon, incentives and car buyers may be plentiful once again. Continue reading ‘Dealers Brace for Cash for Clunkers Aftermath’
Giving money away is certainly one of the best ways to stimulate a frenzy. Case in point is the Cash for Clunkers program, which had quickly burned through its $1 billion budget before Congress approved the allocation of another $2 billion last week to keep the program afloat.
Interestingly, there are apparently more clunkers on the road than many on Capitol Hill initially realized, suggests Saint Paul Ford dealers. As a result, the program was temporarily suspending after only a week of running to allow lawmakers to determine the fate of the program. Ultimately, it was decided that spending more was the appropriate solution.
Cash for Clunkers, officially called Car Allowance Rebate System (CARS), provides $3500 to $4500 to those that purchase a new car and trade-in an older clunker. The system is designed to get older, gas-guzzling vehicles off the road and to encourage the sale of fuel efficient vehicles.
Unlike a normal trade-in, old clunkers are required to be destroyed by the dealer. As Honda Service San Luis Obispo explains, car dealers therefore will not be able to take advantage of any remaining value the vehicle might have. While the program has certainly sent plenty of consumers to dealerships, some visitors to Philadelphia Used Cars have suggested that simply throwing away vehicles that may still have value is a bit wasteful – particularly when taxpayers are paying for the vehicle’s destruction.
While some that are not in the market for a new car, and do not own a clunker, may argue that the program has inherent flaws, Cash for Clunkers has nonetheless stimulated new car sales ( at least temporarily). This is important considering new car sales have continued to plummet in recent months. While this program may not help most drivers, it certainly is already helping new car dealers as plenty of consumers are interested in getting $3500 to $4500 off the price of a new car. Continue reading ‘Troubled Cash For Clunkers Program Continues’
Toyota sales dropped about 11 percent in the month of June. While not a positive outcome, it was a signal that the industry’s recovery may be underway.
Toyota’s market share remains strong and while sales have certainly fallen compared with last year, the numbers are still comparatively healthy next to those of other automakers suggests a Toyota Washington DC dealer. Needless to say, tight credit and unemployment are still factors that are hampering new car sales.
What has helped Toyota more recently is the Cash for Clunkers program. This government program offers up to $4,500 for those who trade in a gas-guzzler for a more fuel efficient vehicle. With Toyota’s reputation for producing economical cars, the program has helped fuel new car sales. Another $2 billion may soon be appropriated for the program to maintain the influx of new car sales that one Toyota Boston dealer says the industry as a whole desperately needed.
In addition to Toyota, Ford, Honda, and Hyundai are already gaining market share from other GM and Chrysler, and look to dethrone Toyota from its dominance in the North American market observes car dealers Santa Maria. But with a recent sales gain due to steep demand for the all-new third generation Prius, Toyota is down but certainly not out of the game. Continue reading ‘Cash For Clunker Fuels Toyota Sales’
About $5 billion worth of federal loans are on their way to auto-parts suppliers, helping to aid companies in the crippled automotive industry beyond Chrysler and General Motors. Drawing money from the Troubled Asset Relief Program, this new Supplier Support Program will provide auto part suppliers with the vital cash they require to stay afloat as auto sales and production sinks.
With the automakers cutting production, the effect has trickled down to auto part suppliers, which have likewise had to curb production themselves. With fewer orders for parts, suppliers are struggling to keep their doors open and cash has quickly dried up.
The auto industry has already received an influx of $17.4 billion to boost the cash flow at GM and Chrysler. However, after significant consideration, and to the delight of others in the industry such as Oklahoma City GMC dealers the Treasury decided that other facets of the automotive industry were also eligible for federal aid. Part of the concern was that auto supplier bankruptcies could also jeopardize automakers that are healthy says BMW dealer Los Angeles since many automakers share many of the same suppliers.
With the aid of both the automakers and the auto parts suppliers, the Toyota Accessories Store believe it’s evident that the current administration would not like to see bankruptcy as an option. In addition, the automotive supply chain just an important to the industry overall.
Auto parts suppliers had recently asked for about $25 billion in loans and other assistance. So far the administration is not willing to go to those lengths. But the administration does believe that the new funds will help sustain the most important companies within the supply chain, which remains vital at this time says Used Cars Albuquerque. Ultimately, the additional funds to both automakers and their suppliers will ensure that production does not become disrupted and will be saved. Since even the biggest suppliers are dangerously close to insolvency, Boston Used Cars dealers agree that the funds are a vital lifeline for an industry that has rapidly destabilized. Continue reading ‘Auto Parts Suppliers Receive $5 Billion in Aid’
More bad news for the auto industry, as sales have been reported for the month of January. As expected, consumers were still skittish about venturing to car dealerships. Sales of cars and trucks in the U.S. plummeted 37% overall, creating a grim picture of the yeah ahead.
The economy is facing a long road ahead, and car dealers and the automakers are struggling to maintain momentum. Consumers don’t have the spare cash on hand to afford new cars. Meanwhile, Pontiac Pittsburgh know all too well that financial institutions are simply not eager to lend money, hampering car dealers’ ability to sell more cars.
General Motors sales fell 49% in the month of January, creating a terrible start for the embattled automaker as it’s busy reorganizing. Additionally, Chrysler, who also is undergoing organizational changes, saw sales fall to about half the amount from what they were last January.
Japanese automakers were a little more fortunate than domestic automakers, but certainly not immune to the dearth in consumer confidence, acknowledges one Pittsburgh Honda dealer. Toyota and Nissan sales dropped by about 30% in January.
To put these sale declines into perspective, in January 2008 the automotive industry sold a total of just over a million cars. January 2009 saw that number drop to 656,976. That’s a huge drop in new car sales, and as each month passes, those numbers seem to be on a slow yet steady decline. The total sales in January are the worst since June of 1982.
Although consumer spending is down, Westminster Toyota dealer says there are other areas that weighed heavily on the automotive industry. Specifically, fleet sales and rental car sales have plummeted, as businesses are cutting back, and consumers are traveling less. While fleet sales are typically low-profit, they make up a substantial chunk of overall sales. Declines in fleet purchases also means that more inventories may be sitting idle warns Orlando Chevrolet dealers. In fact General Motors saw a decline of about 80% in January – the lowest fleet sales level since the mid 1970s!
With numbers for January of 2009 already looking grim, many dealers and industry analysts are expecting it to be a bad omen, and a sign of a long and tough year ahead. Sales need to be improved to facilitate the success or reorganization plans underway at the Big Three automakers, but Newark Ford dealers and others wonder if that is possible in the near-term.
Despite the grim picture, there are plenty of dealers like Hartford Nissan dealers that remain optimistic. Regardless of low sales, January is normally a low sales month. Additionally, it is hoped by Louisville Chevy that the stimulus provided to the automakers by the federal government, and loosened credit, will give the Big Three in particular the ability to do business more effectively in the long run.
Among the ways the automakers and dealers are dealing with the sluggish sales is by offering incentives to car buyers. Specifially, car buyers can expect employee pricing at Hartford Chrysler dealers and other Chrysler stores, while dealers may be offering zero percent financing such as at Kingston Toyota dealers. Many buyers can also get their hands on cash back incentives. These are all efforts to entice consumers into showrooms, and thus far it has had a marginal effective overall.
Despite declines, there have been some automakers that have seen gains in January. Among these few instances is Hyundai, which posted a 14% sales increase. Hyundai is currently offering a unique incentive, providing new car buyers with the Hyundai Assurance Program, enabling consumers to return their vehicles should they lose their job or otherwise cannot make the payments. It is hoped that this program may help spur sales among frugal new car buyers at Hyundai Boston and elsewhere as the economy weighs heavily on consumers’ minds.
Another automaker that saw gains in January was Subaru. Driven largely by its recently redesigned 2009 Subaru Forester, which saw sales gains of about 115%, Subaru has seen its second straight month of sales gains.
Other sales numbers include a 32% dip for Toyota, a 30% decline for Nissan, and a 28% drop for Honda. Continue reading ‘Automakers See Bad Start to New Year’
With the recession dramatically influencing auto sales, it isn’t only the Detroit Big Three, or the Japanese Big Three, hurting for more sales. Potential buyers of premium auto brands are also thinking twice about buying new cars.
The hottest, priciest, and most luxurious cars have also faced the wrath of a shaky economy. Even the most prized brands have faced falling sales. But it isn’t just autos either. Consumers are simply staying away from premium products across the board.
At the first sign of slipping car sales, many assumed that the luxury car market would be unharmed. It was expected that wealthy buyers would not be subject to the adverse conditions that have kept consumers from visiting Chevrolet, Ford, or Toyota dealerships. Unfortunately, the assumption was not accurate, as luxury car sales, according to Autodata, have fallen about 19 percent this year. From Lexus, to BMW, to Mercedes-Benz, steep losses have been felt, says one Acura dealer Pennsylvania, as fewer buyers can afford the bells and whistles that come with these luxury brands. Even the top echelon of premium brands, such as Bentley and Aston Martin, have also faced global sales slump, which has also fueled substantial layoffs.
While widespread layoffs are occurring, and wealthy types being forced to forgo lucrative bonuses at the very least, it’s no wonder why premium car sales have been hit hard. But while some dealerships may be struggling to get by, others such as Denver Land Rover dealers have the luxury of having a long-established business and a well-known name to get by while sales nationwide suffer.
Although premium new car sales have been shaky at best, there is a silver lining for some. Premium used car sales among New Hampshire Volvo dealers and Philadelphia used car dealers have actually increased. Mercedes Benz Pittsburgh says luxury buyers don’t want to give up the premium brand, but they do want to spend the normal gobs of cash to get it.
The automotive market in general is in a dismal state, and there’s more to it than just building the wrong cars. Many claim that the biggest problem with the Big Three is that they have produced the wrong types of cars. Yet at Los Angeles harbor, loads premium cars remain unsold and awaiting shipment. Luckily for premium automakers, they have the cash to get by. Unfortunately, like the Big Three, many premium dealers may not have that luxury. Continue reading ‘Luxury Dealerships Face Sales Slump’
Car buyers are placing plenty of pressure on today’s car dealers. As such, car dealers are increasingly being looked upon to provide a positive buying experience, while also providing the best experience throughout ownership. Perhaps no other manufacturer understands the importance of this better than Mercedes-Benz. Not only do buyers have high standards in their treatment when purchasing a car, but they also require plenty of attention when receiving service and other dealer amenities.
As a result, Mercedes Benz will be working to develop an all-new Mercedes Manhattan dealership to be the flagship store in the heart of the Big Apple. The project will be the start of a new design direction for the Mercedes dealership network which is already eagerly anticipated by Pittsburgh used Mercedes dealers and will feature new architectural features that will compliment the posh MB brand.
The Manhattan Mercedes Benz store will be comprised of over 330,000 sq. ft. and will feature unique showroom technology and stunning design throughout. The dealership will also house Mercedes-Benz, Maybach, and Smart brands, along with a pre-owned inventory as well, plus vehicle service facilities.
Mercedes-Benz continues to see opportunities in Manhattan and see the location as a perfect hub for change. The showroom originally was designed by Frank Lloyd Wright and was later expanded and renovated in 2002. Although Mercedes is making a push to rejuvenate their dealers, they are are not only premium German automaker to see upgrades. Oceanside BMW and other BMW and Audi dealerships are also making upgrades to meet rising demands from customers, and to help remain competitive in a more challenging market. Meanwhile, other premium brands such as Infiniti are also under pressure, but are relying on fresh new models says Boston Infiniti dealers such as the new G37 Convertible to keep drawing-in potential buyers at dealers. Continue reading ‘Premium Auto Dealers Make Store Improvements’
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